By Chiwendu Obienyi and Chukwuma Umeorah
The federal government has said it is edging closer to finalising the acquisition of Mobil Producing Nigeria Unlimited (MPNU) from ExxonMobil by indigenous energy company, Seplat Energy.
The Minister of State for Petroleum Resources, Heineken Lokpobiri, on Tuesday, reiterated the government’s commitment to concluding the deal at the ‘Facts Behind the Figures’ presentation of Seplat Energy to mark a decade of its listing on the Nigerian Exchange.
According to him, “We are at the verge of closing those issues, and I can assure you that we will close that in a very short time. The president is committed to the closure of that deal.”
MPNU is ExxonMobil’s Nigerian offshore shallow water business and holds gas as well as oil reserves. The proposed acquisition, initially announced on February 25, 2022, saw Seplat Energy agreeing to acquire ExxonMobil’s 40 per cent stake in MPNU, a deal valued at $1.28 billion with a contingent payment of up to $300 million. However, the transaction faced obstacles that hindered its completion.
Despite these challenges, Lokpobiri emphasised the significance of finalising the deal in attracting new investments amidst global campaigns against fossil fuel investments. “If we close these Seplat transactions, Seplat expands their transactions, Bonga North, which is predicated on that resolution, comes on board,” Lokpobiri stated, highlighting the potential for Nigeria to emerge as a new investment destination.
Furthermore, he underscored the importance of addressing Nigeria’s energy challenges through home grown solutions, emphasising the need to deploy advanced technology for sustainable oil and gas production.
“We are committed to sustaining our production in oil and gas but in a more responsible and cleaner way by deploying the best technology. I applaud Seplat’s exceptional performance in the last 10 years and as Minister of State, Petroleum Resources, I assure that we will partner with Seplat to expand their investments, not only for the benefit of its shareholders, but also for Nigeria,” he said.
The board and management of Seplat reiterated that it will continue to focus on value creation for shareholders, sustainable practices and strategic acquisitions. Its Chief Executive Officer, Roger Brown, stated that the power of indigenous companies is to bring growth and prosperity to their home countries and the people.
“One example of how Seplat Energy is making an enduring difference to Nigeria and host communities where we operate is that nearly $50 million had been invested by our Joint Venture partnerships in communities since our inception to date. Truly, Seplat Energy has delivered significant value by enhancing strategic, operational and financial achievements in 10 years as a listed company,” he added.
On his part, Acting CEO, NGX, Jude Chiemeka, stressed the importance of the capital market in helping companies raise funds and creating wealth for all, stating that Seplat Energy was listed at N576 but currently trades at N3,370 which is an increase of over 484 per cent.
Chiemeka said, “The figures show that in the last 10 years, the company has paid out $575m in dividend payments to shareholders in Nigeria and London where they are also listed, so this company has given investors a huge opportunity to really participate in wealth creation. Reports show that Nigeria would be among the top 20 countries in the next 25 years, and I think Seplat is poised to be one of the institutions driving growth, prosperity, and inclusion in our nation”.
In his comments, CEO, NGX Group, Temi Popoola emphasized the significance of Seplat Energy’s decade of dual listing stating, “If we were to look back to our market and tried to find landmarks, the last major landmark you will find in the last ten years is this transaction that we are celebrating today, and the market is very grateful for that”.
NGX Group Chairman, Umaru Kwairanga, in his opening remarks highlighted the importance of partnerships between the NGX and companies like Seplat Energy in driving economic growth and development.